Citigroup Invests $22.5 Million In Flemingo Duty Free
Citigroup Venture Capital International has picked up 15 per cent stake in Flemingo Duty Free Shops Pvt Ltd (FDSPL), the company which runs duty-free shops at various airports and seaports. The deal is valued at more than Rs 100 crore. The Foreign Investment Promotion Board (FIPB) has cleared Citigroup’s investment proposal.
FDPSL would issue convertible preference shares to the Citigroup, which would be converted into equity at a later date for a premium.
Currently, Flemingo International, a company based in British Virgin Islands, holds 51.22 per cent equity stake in FDSPL while various NRIs hold 24.87 per cent stake. After conversion of Citigroup’s preference shares; Flemingo International, NRIs and Citicorp would respectively hold 43.54 per cent, 21.14 per cent and 15 per cent in FDSPL, taking the total FDI to 79.68 per cent.
Meanwhile, the government has also cleared a proposal from Dubai-based Damas Jewllery to set up a jewellery joint venture with Flemingo. Damas will pick up 51 per cent stake in the JV with FDSPL which will set up duty-free jewellery outlets at Indian airports. The JV is called Flemingo Jewellery India Pvt Ltd.
They have already been allowed to set up shops at Chennai, Trivandrum and Jaipur international airports.
The JV firm will issue 22,95,000 shares at Rs 10 face value to Damas.
